Financial innovations will evolve with global farming
Thursday, July 6, 2017
Subject
Financial innovation in European agriculture
Significance
Changes to Europe’s Common Agriculture Policy (CAP) are coinciding with increased political uncertainty to create new supply chain risks for farmers and agribusinesses. For financial services firms, there are opportunities to develop services and tools to manage and transfer critical risks. In 2015, European milk production quotas were abolished. Planting rights and quotas are due to be removed from sugar beet and wine production.
Impacts
- Short-term uncertainty in trade agreements is likely to prompt firms to invest more in risk management.
- Brexit uncertainty may result in more variable demand, encouraging the use of financial services to stabilise incomes and price key risks.
- Ireland is exposed to the Brexit talks as the United Kingdom is a key importer of Irish products and Ireland is a land border with the EU.
Related articles
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.